Meg Whitman Details Lay...

Confirming rumors from last week, HP just publicly announced a layoff plan that will result in a reduction of 8% of its workforce. Shortly after releasing the memo to Wall Street, HP CEO Meg Whitman sent a company-wide video message explaining the future of Bill Hewlett and David Packard’s company. She acknowledges throughout that HP is in trouble, stating in the beginning, “HP’s performance is still not where it needs to be” and “We have a lot of work ahead of us to get HP back on track.” She also explains, a bit comically and perhaps erroneously, that “[HP] is currently rebuilding credibility one quarter at time, and to do that, we need to consistently deliver on what we say.” Whitman also reaffirmed HP’s commitment to infrastructure, PCs and printing, servers, storage and networking. “This is a differentiating strength for HP and one we can be proud of,” she said in the video. However, the axe is about to fall throughout HP. Before Whitman attempts to justify the cuts, she explains that HP’s employee count has grown at a pace unsustainable by its low revenue as of late. “We’re struggling under our own weight,” said Whitman in today’s internal video memo. “And we’ve got to restore a healthy balance in order to return HP to its position as a growing… thriving… innovating… industry leader. That’s what this is all about. And the workforce reduction is only one piece of a comprehensive effort. We see a lot of opportunity to remove complexity, streamline and reduce costs in a number of areas across HP.” Like previous rumors speculated, HP plans on reinvesting the savings into the company. “We’ll be investing to drive leadership in the three strategic pillars – cloud, security and information optimization. And in each of our businesses, we’ll make investments to stay ahead of customer expectations and market trends.” This is a fresh move for HP who under previous leadership simply used the savings of a smaller company to help the ledger. In the consumer-focused PC and Printing Group, “we’ll be focused on design, engineering, quality, and generating demand and desire with our customers,” she said. In Enterprise Servers, Storage and Networking (ESSN) “we’ll invest to drive R&D and innovation in our core businesses of servers, storage and networking. In Software, we’ll be investing to speed development across Security, Information and Management Infrastructure for both on-premise IT and in the cloud – with a key focus on software-as-a-service offerings. This will include the extension of Vertica and Autonomy across our entire portfolio. And in Services, we’ll improve processes and build-out capabilities in cloud, security and information. We’ll also be strengthening our industry practices, as well as our service quality and innovation.” Whitman also detailed that HP is looking to better train their employees while providing a “career development and better tools and support.” Like most leaders, Whitman ends the video with a reminder to her underlings that “In times of change, it’s easy to lose focus, waiting to see what happens next. We can’t let that happen. This a great organization, full of incredible people who are resilient, committed and who care about our customers and our company. I’m asking all of you to please keep driving forward. Close every deal. Leave nothing on the table. We need that now more than ever.” Below is a transcript of the video. We are currently working on obtaining the video itself. Hi. Today HP announced second quarter results, and once again, we delivered on what we said we would do. Our publicly-stated guidance for non-GAAP diluted earnings per share was 88 to 91 cents. And we delivered 98 cents, beating our outlook by 7 cents a share on revenues of $30.7 billion. I thank all of you for your hard work and dedication. This is a journey. We’re rebuilding credibility one quarter at time, and to do that, we need to consistently deliver on what we say. You are at the heart of our results. Without your efforts, HP cannot thrive. But HP’s performance is still not where it needs to be. Our business is still declining. Year-over-year, non-GAAP EPS was down 21 percent and revenues were down 3 percent. We have a lot of work ahead of us to get HP back on track and that begins with executing against the strategy we’ve talked about in recent months. Our foundation is infrastructure, PCs and printing, servers, storage and networking. This is a differentiating strength for HP and one we can be proud of. HP Software extends and strengthens that foundation, solving customer challenges like managing, securing and automating the information flow across the data center. Services makes it all work together for the customer, ensuring their technology is meeting their needs. And finally, we combine our infrastructure, software and services into comprehensive solutions that deliver enormous customer value. Moving forward we’re aligning our powerful collection of assets to capture leadership in three strategic areas: Cloud, security, and information optimization. But to do this we must invest and we cannot afford to wait. As we discussed in Q1, our costs are expanding while our revenues decline, and this has been happening for too long. The strategic realignment we announced last quarter was a good first step in addressing this problem by beginning the process of removing complexity, simplifying our operations, and reducing costs. And today we’re taking the next step in this journey with the announcement of a multi-year restructuring that will touch every part of HP and create a more streamlined company. We’re taking a pre-tax charge of approximately $1.7 billion to be included in our FY12 GAAP results, as well as a further multi-year pre-tax charge of $1.8 billion. By the end of 2014, we expect to reduce the workforce by 27,000 positions through a combination of layoffs and early retirement. And we expect to generate run-rate cost savings of approximately $3 to 3.5 billion. These are difficult actions. Workforce reductions aren’t easy and we don’t take them lightly. They adversely impact people’s lives and are tough on the company, our culture and you. We’re trying our best to mitigate the impact as much as we can. We’ve limited hiring to try and reduce the number of people affected. For those positions we have open, we’re giving top consideration to internal candidates. We’re offering an upgraded early retirement package in the US, and expanding our career transition and planning services to better support employees. I know HP has been through a lot in recent years and this is another dose of change. But in this case, it’s absolutely essential for the long-term health of our company. Let me share a little perspective. At the end of 2009, we reported a workforce of about 304,000. At the end of 2010, we had almost 325,000 employees and at the end 2011, that number had ballooned to nearly 350,000. Over that same period, we saw year-over-year revenue growth of 10 percent in 2010, of 1 percent in 2011… and so far in 2012, revenues have been declining. We’re struggling under our own weight. And we’ve got to restore a healthy balance in order to return HP to its position as a growing… thriving… innovating… industry leader. That’s what this is all about. And the workforce reduction is only one piece of a comprehensive effort. We see a lot of opportunity to remove complexity, streamline and reduce costs in a number of areas across HP. I know that many of you remember the cost reduction of years past, like data center consolidation and centralizing functions such as HR, Legal, Finance and IT. What we’re doing now is different. We’re going after the big cost buckets and fundamental business process reengineering. This includes optimizing the supply chain, reducing the number of SKUs and platforms, continuing to hone our real estate strategy, simplifying our go-to-market, improving business processes, and implementing consistent pricing and promotions to drive end-user demand profitably. It’s harder work with greater potential payoff. Another difference from years past is what we plan to do with the savings. The majority of savings this time around will be invested in the business. We’ll be investing to drive leadership in the three strategic pillars – cloud, security and information optimization. And in each of our businesses, we’ll make investments to stay ahead of customer expectations and market trends. In our PC and Printing businesses, we’ll be focused on design, engineering, quality, and generating demand and desire with our customers. In ESSN, we’ll invest to drive R&D and innovation in our core businesses of servers, storage and networking. Together they create a converged infrastructure that is the foundation for top customer initiatives such as cloud, big data analytics and social media. In Software, we’ll be investing to speed development across Security, Information and Management Infrastructure for both on-premise IT and in the cloud – with a key focus on software-as-a-service offerings. This will include the extension of Vertica and Autonomy across our entire portfolio. And in Services, we’ll improve processes and build-out capabilities in cloud, security and information. We’ll also be strengthening our industry practices, as well as our service quality and innovation. Additionally, we’ll invest in our people – in better training, better career development and better tools and support. In times of change, it’s easy to lose focus, waiting to see what happens next. We can’t let that happen. This a great organization, full of incredible people who are resilient, committed and who care about our customers and our company. I’m asking all of you to please keep driving forward. Close every deal. Leave nothing on the table. We need that now more than ever. I’m confident in the decisions we’ve made and the direction we’re going. Together, we will define the future of HP and of our industry. We’ll be holding our next all employee broadcast on June 18th and I look forward to speaking with you then and answering your questions. Thank you.

U.S. Launches Digital R...

There’s all sorts of data that the government has, but very little of it is actually accessible by developers. But the U.S. Government is trying to change that: Wednesday at TechCrunch Disrupt, U.S. Chief Technology Officer Todd Park and Chief Information Officer Steven VanRoekel announced a new initiative within the government to open up data that was previously locked up in government documents and arcane backend systems. That will allow developers to create new applications and services based on that data. The digital road map is based on the following five ideas: Open Data as the new default Anywhere, anytime on any device Everything should be an API Make government data social Change the meaning of social participation With the launch of the new digital roadmap, the U.S. government is hoping to increase the way that users can access data in many different ways. It’s also designed to decrease inefficiency in government and to allow developers to build applications that the government would never have dreamed up. It’s also built around the idea that government data has to become less sprawling. As a result, it is going to stop building new .gov websites, and ensure that all agencies which already have a website need to have a /DEVELOPERS page. The government has also been pushing innovation by sponsoring meetups, hackathons, and “datapaloozas” through which developers can show off new apps that they’ve built. And here are the first five projects that Park and VanRoekel announced as part of the initiative: The launch of a portal called MyGov, aimed to be a user-friendly website for government services. The launch of the 20% Campaign, a way to move from cash payments to mobile payments overseas. Introduction of a program called RFP-EZ, which will let startups that don’t usually compete for government projects have access to them. The launch of Blue Button for America, which will let developers create apps to allow U.S. citizens to have access to their own health data. Open data for access from new industries, including energy, education, non-profits, and safety.

Juniper Networks Invest...

Video conferencing startup Vidyo announced Tuesday that it has received a strategic investment from Juniper Networks as part of the network equipment vendor’s Junos Innovation Fund. The funding comes alongside existing Vidyo investors such as QuestMark Partners, Menlo Ventures, Rho Ventures, Star Ventures, and Four Rivers Group. Vidyo makes video conferencing software that allows organizations to very efficiently and effectively make and receive video calls across any number of connected devices. Its video compression technology is based on H.264 Scalable Video Coding (SVC), which can be used to deploy high-quality video conferencing, even on constrained mobile networks. The company sells some video conferencing equipment directly to enterprises, but it also has a large and growing OEM business, with partners such as HP, Google, Ricoh, Hitachi and others licensing the technology to put in their own products. The Juniper investment could signal either a possible acquisition at some point in the future — or at the very least a much closer partnership, which could mean integrating Vidyo’s video conferencing technology directly into its networking equipment. Juniper partnerships and strategic investments that have turned into acquisitions include Ankeena, which was also part of the Junos portfolio before the network equipment manufacturer acquired it outright in 2010. Juniper also integrated the technology of Packet Design , another company in its portfolio, into its networking equipment. And Juniper was rumored to be looking to buy portfolio company Cotendo before it was acquired by CDN competitor Akamai. Vidyo is headquartered in Hackensack, NJ, but has 12 other offices and 225 employees worldwide. While terms of the Juniper funding weren’t disclosed, they bringing total money raised to $97 million since being founded in 2005.

CallApp Uses Social Dat...

One of my least favorite moments of the day comes when my iPhone rings and the number isn’t in my contact book. Is it an important call from an entrepreneur? A random PR person pitching me? Or just a telemarketer? I won’t know until I pick up. CallApp , a startup launching today at Disrupt, wants to eliminate those awkward moments, for starters. It’s creating what CEO and co-founder Oded Volovitz calls a “universal social contact book.” It’s drawing data from social networks and other data sources to give users more context about phone calls and other communication. The data also comes from CallApp users — users can edit CallApp listings, and if they choose, they can add their contact book into the company’s general database. So when you get a phone call, even if it’s from someone who isn’t in your contact list, you should be able to see information about them — say a photo, their most recent update on Facebook, and your most recent email exchange if you’ve corresponded with them. Of course, if your phone is already ringing, you’ve only got a few seconds before you need to pick up, but at least you can glance at your screen and go into the call with some basic context. CallApp should be even more useful when you’re about to make a call. Then, the social network updates can give you a way to start off the conversation, or tell you when someone has traveled out of the country, so maybe now isn’t the best time to reach them. You can also attach personal reminders to CallApp contacts, share your location with them, or set up a meeting. In some ways, the concept is pretty similar to an email plugin like Rapportive ( recently acquired by LinkedIn ) or Xobni. However, Volovitz says that bringing this information to the smartphone puts it in a different context. After all, when he gets a phone call, “I cannot wait until I can go to the Internet to see who is calling me. This is about giving you real-time, immediate, the most relevant information you can get, and the tools to execute on that information.” Volovitz also says CallApp, despite the name, isn’t just about phone calls — he estimates that he only uses it for phone calls 50 percent of the time. The app also lists and connects to other ways for reaching people, like WhatsApp Messenger and Viber. The core of the experience isn’t the phone call but the contact itself, Volovitz says. Nor is CallApp limited to personal contact listings. It includes businesses too, showing you things like Yelp reviews, Google Street View, or a menu for a restaurant where you’re thinking about making reservations. Moving forward, Volovitz says the company will be adding features that are more about encouraging “serendipity.” The app is available on Android phones (you can download it from Google Play here ). CallApp is developing a version for iPhones too, though Volovitz estimates that it will have 80 percent of the functionality of the Android version, due to “some technical issues.” Volovitz says the company isn’t monetizing the app (which is free) yet, but there are a number of possible business models, including affiliate fees. The company has raised $1 million in funding from undisclosed venture capital firms and angel investors. Disrupt Q&A Q : How does the iOS app differ? A: There are more limitations than in Android, like you have to use the built-in dialer rather than any dialer you want. Q : What are the viral hooks? A: If you use CallApp to share information with someone, they get an SMS message linking to the content and asking them to download the app. Q: Tell us about the technology. A: What we do is artificial intelligence, big data. The system knows how to link the right person to the right number, for example using location to narrow the search. Q: Why do other improved contact books fail, and why will you succeed? A: It’s all about the execution and the ambition. If you build an app on the client side, you only get a limited amount of information about contacts on your phone, versus CallApp’s crowdsourced, cloud-based approach.

K3 Server Is Making Ent...

How is data moved between systems? In the enterprise environment, point-to-point application interfaces are either handled with expensive and cumbersome utilities or, more likely, with custom code…and frankly, a lot of manual labor. BroadPeak Partners has a better idea. The company is today introducing its application known as K3 Server , a system that aims to disrupt the traditional enterprise interface market by making it easier for I.T. to build, and for end users to tweak, the way code is handled, transformed, reconciled, mapped and enriched as it moves in between systems. BroadPeak is a software consultancy formed in 2006, whose founders have backgrounds in energy trading and capital markets. The idea for K3 Server came to them last year, when they saw the difficulties in how trades were being brought off an exchange and managed for one of their clients. “It really wasn’t about retrieving trades from that exchange,” explains co-founder Vivek Pathak, “it was about moving data from one system to another system effectively, in a way that was transparent for the business users, and that had fail safe mechanisms to alert when things went wrong (as always does in big tech enterprises), and to give a way for a simple business user to manage the logic of that integration thereafter.” And so K3 was born. But the product isn’t just meant for moving data off an exchange – the technology BroadPeak designed can be used for anything. Containing 140 open source components which are initially put to work by in-house I.T., the system can be purposed for moving and managing data between just about anything, from data stores in price repositories to electronic health records. The system offers three main functions: transparency (allowing you to see what data goes through and what fails, so you can act upon that), mapping (field x in System A maps to field y in System B) and rules (if data meets this criteria, then take this action). For IT, K3 Server means they no longer have to re-invent the wheel every time they need to translate data between two systems or develop a failover routine, for example. The framework allows them to call up the component instead of coding these pieces from scratch every time they’re used. But while the main data highway, so to speak, is set up by IT, the interesting thing about K3 Server is how the data is handled afterwards. In a traditional environment every little tweak or adjustment would have users scrambling back to developers with a change request. But K3′s “Rules Manager” offers a GUI interface that lets end-users customize their own “if/then” statements for how the data needs to be enriched afterwards (add this reference, set this field, e.g.) Pathak says that in early beta testing, the GUI was simple enough for an end-user to handle, even though this was someone for whom using an Excel spreadsheet was considered a technical feat. Plus, the company claims that using the K3 Server system instead of traditional processes results in a 50% reduction in deployment, operation and maintenance of enterprise integrations. And who doesn’t love less work, right? Given BroadPeak’s wide client connections from their consultancy practice, they’re not worried about signing up their first users. However, others interested can sign up to beta test here . For those waiting for the public launch, it’s very close, we’re told, and the system will then be licensed on a per-server basis, renewed annually. BroadPeak bootstrapped their efforts, spending around $500,000 on K3 Server’s development, and is not looking to immediately raise funding. Disrupt Q&A Judges: Adrian Aoun, Fritz Lanman, Dave Samuel & Michelle Zatlyn MZ: What are the benefits of this? A: Fast to deploy, really after replacing custom code. Market is around trading, primarily. Can move 30K trades per second through K3. Benefit to business: gets data to right place at right time. AA: You know it’s not just about wrapping data, it’s about taking actions on data. How much extensibility is in the UI? And what happens when you pass the limits of that? A: Have 65 integration patterns, plus open source components. We know that in the future we need to create UI transparency into those integration patterns. FL: Which verticals are being targeted? A: Trading is a great place to start, because there’s a low tolerance for losing data. Also looking at healthcare and CRM. FL: Risks in sales process? A: Developers are used to developing their own stuff. Wish I could say it’s been easy. Sales cycles are about 6 months. DS: More about the team? A: Trading biz and tech for long time. (See above) AA: Is it easy to pitch CIOs? A: Most boring part – mapping – is the bane of CIOs, they’re backed up all the time.